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Inflation means each dollar buys a little less each year. Even modest inflation compounds: at 3% per year, prices roughly double in 24 years. This is why money left in cash slowly loses value, and why long-term savings are usually invested to grow faster than inflation.
At 3% inflation, $100 today has the buying power of about $74 in ten years.
Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →